Ethena jumps 7% following launch of Avalanche-powered neobank

Ethena (ENA) gains 7% on Tuesday after launching Ethena Pay, a self-custodial mobile application that combines dollar savings, global transfers and card payments.

Built exclusively on Avalanche, Ethena Pay allows users to hold balances in USDe, Ethena's synthetic dollar, while accessing savings rewards and payment services through a single application, according to a Tuesday statement.

The platform offers a dollar savings rate of up to 6%, with rewards paid daily, alongside cashback of up to 5% on eligible card spending. Ethena shared that cashback rewards are paid in AVAX.

Users can also access borderless money transfers, multi-currency savings accounts and fiat onramps supporting USD, GBP, EUR, alongside local currencies. The application includes fiat IBAN integration through banking partners alongside self-custodial stablecoin wallets.

Ethena has also introduced a feature called “Buy Now Pay Never,” which uses savings rewards to help offset everyday expenses. However, the feature's availability and operation may depend on a user's jurisdiction and account tier.

Ethena Pay is structured as a non-custodial service, meaning users retain control of their digital assets rather than depositing them directly with Ethena. Wallet access is secured through passkeys and biometric authentication, while users can withdraw digital assets to external wallets or transfer funds through supported banking rails.

Ethena said it does not operate as a bank, hold customer funds or extend credit. Fiat IBAN services are instead provided through licensed banking partners, while the self-custodial wallet infrastructure gives users direct control over supported digital assets.

Avalanche serves as the exclusive settlement layer for Ethena Pay's payment infrastructure. The blockchain will support transfers, payments and settlement operations within the application.

Access to Ethena Pay is initially limited to 400 early-access users across supported regions. Ethena plans to expand access weekly throughout September as the application moves through its phased rollout.

The service is currently available to iOS users in 48 countries, although product availability varies by jurisdiction. Users in unsupported regions can join a waitlist for access when the service becomes available in their markets.

Ethena also noted that its Spend Card is not available to US persons, reflecting regulatory and jurisdictional restrictions surrounding the product.

ENA rally sparked by updated unlock schedule

The announcement came after the Ethena Foundation previously revealed a series of measures aimed at addressing concerns over selling pressure from early investors. 

Ethena Foundation noted that it had repurchased locked ENA tokens from certain major seed investors while accelerating the remaining investor token unlock schedule.

The Foundation also released a governance proposal to introduce supply-based milestones that determine the portion of protocol revenue allocated to ENA buybacks.

ENA is trading at $0.161 following the announcement, up 6.7% in the past 24 hours at the time of writing. The token surged alongside the broader crypto market in the past 2 weeks, extending its gains to 83.7% in the past 30 days.